Purdue Tourism & Hospitality Research Center Sustainable Tourism Branding: Experience and Authenticity Liping A. Cai, Ph.D., MBA Professor and Director Purdue Tourism and Hospitality Research Center http://www.purdue.edu/tourism/ Purdue Tourism & Hospitality Research Center Starbucks from Experience to Commodity • Schultz: “the commoditization of the Starbucks experience” ??? Experience Service Product Commodity Purdue Tourism & Hospitality Research Center Starbucks Losing Authenticity Purdue Tourism & Hospitality Research Center Le Méridien’s Emotional Makeover Purdue Tourism & Hospitality Research Center Budget Hotels – Telling Stories Experiential Value Symbolic and Emotional Levels Functional Level Purdue Tourism & Hospitality Research Center Feelings, Emotions, Sense of Authenticity Brand <<<<Emotional Experience Service Commodity Rational>>>> Product TIME, Jeffrey Kluger, Dec. 3, p 60 Purdue Tourism & Hospitality Research Center Left: Emotional and Affective Right: Rational and Cognitive Purdue Tourism & Hospitality Research Center BW Dec. 10, p. 63 The 4-P Marketing Is Dead! Purdue Tourism & Hospitality Research Center Marketing Æ Branding • Product (service) Æ Brand • Marketing Æ Marketing Innovations Æ Branding • Branding is a holistic and sustainable approach to serving the experiential needs of contemporary consumers Purdue Tourism & Hospitality Research Center Destination Branding The destination offer is inherently experiential: • Before the trip – Promise • During the trip – Action • After the trip: Cultivation Purdue Tourism & Hospitality Research Center Destination Branding ≠ Creative Advertising • The Band Wagon – Pressure to create a message to stand out – Sensational – Even controversial Purdue Tourism & Hospitality Research Center Destination Branding ≠ Creative Advertising • Who are there to deliver and keep the promise? • When promise is broken… • The Australian promise – Where the… Purdue Tourism & Hospitality Research Center Where is the Authenticity? • “Creative” slogans and taglines: – Examples closer to home: • • • • Larger than life The Best Place in the… Come to life Pure and simple Purdue Tourism & Hospitality Research Center Authenticity by Delivering and Keeping Promise - the People Factor • Employees who deal with customers not only represent the brand but, in the perceptions of customers, become the brand (McEwen, 2001) • When the importance of employees to brand marketing is ignored, the cost is huge • Employees on the job, “off the job” Purdue Tourism & Hospitality Research Center Post-Experience: Loyalty Purdue Tourism & Hospitality Research Center Residents – de facto Employees Intangible • Challenge I • Challenge II • Challenge III Greater risk and extensive information search Image Perishable Production and consumption of the product take place simultaneously Interdependent Supply Chain Both horizontal and vertical. • Challenge IV Purdue Tourism & Hospitality Research Center Authenticity – People Factor • How do they do it? – – – – – Harrison County, Indiana Santa Monica, California Copenhagen, Denmark Taiwan Croatia Purdue Tourism & Hospitality Research Center Harrison County, Indiana Purdue Tourism & Hospitality Research Center Imagery Research Desired by Residents: Perceived by Visitors 1. Downtown Corydon, the square 2. Home, hometown, family, community 3. Slower space, relaxing 4. Historic 5. Step back in time, nostalgic, quaint 1. Affective appeal 2. Quality of facilities 3. Overall attractiveness 4. Casino draw 5. Variety of attractions Purdue Tourism & Hospitality Research Center Community Educational Campaign Purdue Tourism & Hospitality Research Center I Am Santa Monica TM • A Certified Brand Ambassador (CBA) designation • Over 1,000 participants taking the initial certificate course • An advanced CBA in development Purdue Tourism & Hospitality Research Center Educational Programs • Sustainable Destination Positioning Branding Educational Courses • CDME • DMAI Purdue Tourism & Hospitality Research Center Wonderful Copenhagen Purdue Tourism & Hospitality Research Center Competion Purdue Tourism & Hospitality Research Center Too Many Senders of Too Many Messages Purdue Tourism & Hospitality Research Center Wonderful Copenhagen • Started as a traditional DMO • Has grown to be a service organization for a network of tourism-related organizations • A flagship brand • Interdependence vs. independence Purdue Tourism & Hospitality Research Center Kaohsiung City, Taiwan • Local food as the lynchpin for the brand • Study of residents’ attitude toward the strategy – Own perceptions – Recommendations Purdue Tourism & Hospitality Research Center Targeting Mainland Cousins Purdue Tourism & Hospitality Research Center Moslavina Branding Project • A regional tourism brand of Croatia • Research began with locals – – – – Pensioners Families with children Youth Tourism professionals Purdue Tourism & Hospitality Research Center Best Practices 1. Mindset shift from a “creative” endeavor to a strategic development process 2. DMO governing and/or advisory body fully supportive, residents’ buy-in and participation 3. Agreement and active participation of other marketing agencies and visitor industry proponents 4. Brand research conducted by credible third-party suppliers Purdue Tourism & Hospitality Research Center Best Practices 5. Use of current destination imagery research and related market/competitive analyses 6. Destination positioning and brand promise statements, brand blueprint for use in brand identity development and communications 7. Use of integrated communication strategies 8. Destination brand as the flagship brand of a place Purdue Tourism & Hospitality Research Center Best Practices 9. Destination brand application to all visitor marketing and local audience communications 10. Development of branded service training and professional development programs 11. Enhanced equity in the destination brand through formation of co-branding partnerships and strategic alliances 12. Monitoring and evaluation on brand equity relative to target markets Purdue Tourism & Hospitality Research Center Main Challenges in Destination Branding 1. Acceptance of one overarching destination brand 2. Appropriate brand research methods 3. Consistent delivery of destination brand promise 4. Accountability Purdue Tourism & Hospitality Research Center Social Exchange in Destination Branding • From economic perspective – Short-term – Transactional, rational – Exchange of goods and services • To sociological perspective – Long-term – Relational, emotional – Exchange of relations, emotions, feelings Purdue Tourism & Hospitality Research Center Social Exchange in Destination Branding DMOs , Service Providers Tangibles Transfer of products/service for money Residents Tourists Purdue Tourism & Hospitality Research Center BW Dec. 10, 2007 p. 063 The Same Fate for DMO? Purdue Tourism & Hospitality Research Center The New Paradigm • Branding in general takes place more and more in a social structure • Social networking Purdue Tourism & Hospitality Research Center The New Paradigm–“Old” Foundations • Sociological • Relational exchange of experience and emotions • Psychological • Image studies • Economic • Brand equity Purdue Tourism & Hospitality Research Center Interdisciplinary Innovations • Intra-regional Cooperative Branding • Inter-country, interregion Co-Branding Purdue Tourism & Hospitality Research Center Tourism Branding – A continuing process to create authentic tourist experiences and build a sustained image that emotionally bonds with the host community and resonates with its targeted markets Purdue Tourism & Hospitality Research Center Happy Branding & Happy Conferencing Thank You! www.lipingcai.us